How to pick an economic approach that really adds up

Assessing doughnut economics, Paul Williams asks what’s the economy for and who does it really serve?

Paul Williams

Paul Williams, the CEO of Bible Society, worked for over a decade in business in London and then as an academic theologian in Canada.

a round table with empty chairs is seen from above. An orange is the only item on it.

Meina Yin on Unsplash.

“Anyone can see that our economic system is broken.”

This is the conclusion of Kate Raworth, author of Doughnut Economics, and her assessment has garnered positive endorsements from figures as diverse as George Monbiot, Andrew Marr and Sir David Attenborough.

Yet to judge by the discussion surrounding the Chancellor’s Autumn Statement, our political class is not included in this broad perspective that Raworth claims. In what is widely understood as the early skirmishes of an election campaign, anticipating the moment when the country’s voters have another opportunity to indicate the direction of travel they hope for, the focus is on who will be better or worse off by this or that tax cut or benefit change. If anything is broken it is not the economic system but something like ‘the government’s economic management’ (Labour) or ‘public sector productivity’ (Conservative).

If you are worried, as Raworth is, by “relentless financial crises,” “extreme inequalities in wealth” and “remorseless pressure on the environment” then it seems that both the government and the opposition believe that the solution is more economic growth, albeit with some barely discernible differences in fiscal and regulatory policy.

Our contemporary political discourse is dominated, regardless of party, by the mainstream economic paradigm in which the market generates economic growth and the state functions to keep things on track by taxing and redistributing some of the surplus to those who for whatever reason didn’t do as well as others in the process. It also provides some additional incentives to business and other organisations to act in the public interest, for instance by subsidising green energy or taxing fossil fuels. Both parties, it seems, support this approach. The difference between them concerns how best the state manages the economy to get the most out of it, how the resulting surplus is distributed, and what kind of further incentives are needed.

Visualising doughnut economics

An economics diagram in the shape of a doughnut.

Source: Doughnut Economics Action Lab.

For Raworth, on the other hand, the first thing to ditch is the assumption that economic growth is the right goal to pursue. The ‘doughnut’ of doughnut economics is an alternative to GDP as a measure of progress. It name is derived from the visual depiction of the idea of an economy that operates in the space within two limits – ensuring the human rights of each person on the one hand, and staying within the means of the planet on the other. This concept refuses to conceptualise the economy as a closed system in distinction from the social and environmental systems on which it depends.

Raworth also wants to shift the emphasis away from the individual rational chooser of economic theory toward a more social understanding of human flourishing. And in direct contrast to the mainstream paradigm sketched above, in which the market’s job is to deliver economic wealth and the state’s job is to worry about distribution and regulation, Raworth wants an economic system designed from the outset to ensure a more equal distribution and to actively regenerate the environment.

The economic system itself is like an engine that can be put to whatever purpose you want. It generates wealth and wealth can be put to all kinds of uses, good or bad.

How might we evaluate this? Nobody disagrees that financial crises, extreme inequality and environmental damage occur and are bad. A good number of mainstream economists find Raworth’s aims laudable and worth pursuing, because we do need a better measure of success and improved models of human behaviour and ways to incorporate and limit externalities like carbon emissions. Yet they also find her analysis of economics a caricature, as many of the developments in economics over the last few decades seem to be ignored.

For her harshest critics, Raworth fails to give due credit to our current economic system for the incredible reduction in global poverty that it has already enabled, provides very little by way of actionable policy ideas, and is full of erudite but wishful thinking.

Yet the popularity of Doughnut Economics reflects a deep sense amongst many of us (some mainstream economists included) that something is seriously wrong, alongside an instinctive identification with the kind of values and changes that Raworth seeks.

The vital question is: what is our economy for? If we can get a better sense of what purpose we want the economy to serve, it may prove easier to identify whether it is achieving that, or is in some sense ‘broken.’

But to ask this question is immediately to step away from the mainstream paradigm that dominates our public discourse in framing the economy. For mainstream economics, questions of purpose are ethical questions and those questions are explicitly left to the actors within the economic system and the state acting on their behalf. The economic system itself is like an engine that can be put to whatever purpose you want. It generates wealth and wealth can be put to all kinds of uses, good or bad.

These ancient texts suggest that our mainstream paradigm is seriously adrift if it imagines that our economic system is morally neutral.

For many people the idea that the economy itself can be separated from ethical questions will automatically raise an alarm. Certainly, for Christians it ought to. The Bible firmly resists the idea that wealth and its generation is morally neutral. Even the most superficial reading of the Scripture alerts to the inherently spiritual and moral quality of economic activity. Fruitful work is part of what it means to be made in the image of God in the garden of Eden. The product of work is offered to God in worship. The Law is full of commands to deal justly, use fair weights and measures, consider health and safety in the building of a house, and give yourself, your family and your animals a rest (to name but a few). Jesus tells us that you cannot serve both God and money. The pictures of the New Creation in both Old and New Testaments include economic imagery – The Old Testament book of Micah envisions an end to war with everyone living “under their own vine and fig tree” (a vision of peace and economic flourishing) and the New Testament book of Revelation depicts the product of human work being offered up in worship before the throne of God.

Overall the Bible sees the economic, social and environmental dimensions of life as interwoven and interconnected. Take the Sabbath, for instance. It is not only workers who get (or are commanded to take) a Sabbath once a week. The command extends to the whole community - and even to animals. Every seven years, the Sabbath Year provides a rest for the land and for those struggling with debt – the land must be fallow and allowed to regenerate, and all outstanding debts cancelled. Sabbath and Jubilee are deeply intertwined (the Jubilee was effectively a sabbath of sabbaths, taking place after seven sabbath years) and the Jubilee was the theological paradigm chosen by Jesus to explain his own mission and ministry. Quoting the prophet Isaiah, he said:

“The Spirit of the Lord is on me, because he has anointed me to proclaim good news to the poor. He has sent me to proclaim freedom for the captives, recovery of sight for the blind, to set the oppressed free, to proclaim the year of the Lord’s favour.”

These ancient texts suggest that our mainstream paradigm is seriously adrift if it imagines that our economic system is morally neutral. And Raworth is closely aligned with the biblical vision insofar as she insists on the importance of an economy that exists not for its own sake, in some independent sphere, but explicitly to enable people, communities and creation to flourish together. We need to ask what our economy is for. And this is as good an answer as you might find.

Review

Books

Culture

Ethics

Film & TV

8 November 2024

4 min read

Small Things Like These: putting the spotlight on backstage goodness

What it means for a film to be good.

Kevin Hargaden

Kevin is a social theologian studying ethics and economics.

The gaunt face of a dishevelled man stares into the distance

A ‘stellar’ Cillian Murphy plays Bill Furlong.

Lionsgate.

Small Things Like These is a novella by the Irish writer Claire Keegan. Published in 2021, it compresses a remarkable story into 128 pages. Acclaimed widely by critics and readers, it follows Bill Furlong, a fuel merchant living in the small County Wexford town of New Ross in 1986, as Christmas approaches. While delivering coal to the local convent, Bill makes an alarming discovery. Memories of his childhood begin to press in on him and he finds himself in an existential crisis.

Like her previous (very short) work, Foster, Small Things Like These is an understated book with a searing moral clarity. And just as Foster was adapted for the screen – in the astonishing Irish-language film The Quiet Girl – a movie version of Small Things Like These is now likely showing at a cinema near you.

The movie is built around a stellar performance from Cillian Murphy. It would be criminal if his name is not featured among the shortlists when awards season comes round. Many of the film’s most arresting scenes feature close-ups of his face as Bill wrestles with the implications of his discovery and the phantoms of his past. The effect is that the film serves as an almost literal portrait of what it means to be a decent person.

The story begins with Bill making a delivery to the convent. He sees a mother drop off her screaming daughter to the back door, where she is met and manhandled inside by a nun. The teenager protests passionately, but to no avail. The viewer understands that this girl has “fallen pregnant”, to use the Hiberno-English idiom that was so common in the twentieth century. She has been dispatched by her family to this institution to serve out the months of pregnancy and to remove any shame or taint from their reputation. Bill watches as the girl shouts out for her father, who is entirely absent.

And, after a tense interaction with an aggressive nun, he goes home to his five girls and his wife, clearly shaken.

A few days later, unable to sleep, haunted by memories of his own childhood being raised by a single mother, with an absent father, relying on the kindness of a wealthy local landowner, he begins his deliveries before dawn. As he deposits peat briquettes in the coal shed of the convent, he discovers a teenaged girl abandoned in the corner of the tiny, filthy room. She is in deep distress and Bill responds instinctively, wrapping his coat around her shoulders and bringing her inside to the convent.

While the existence of Magdalene Laundries and Mother and Baby Homes were not a secret in twentieth century Ireland, the exact details of their operations were not widely understood. With these two encounters, so close together, and his own personal biography as the son of a woman who was subject to exactly the same marginalising dynamics, Bill can no longer be satisfied to turn a blind eye to the oppression and alienation endured by those sent for reformation.

It evokes the ways in which all such systems of oppression are socially constructed and maintained. Otherwise, good people learn to look the other way.

The film gathers momentum as Bill is forced to confront the way his mother had been treated for “falling pregnant” and the reality experienced by girls the same age as his daughters who were in a similar situation. In the midst of his existential angst, he finds little solace in the no-nonsense pragmatism of his wife who reminds him “there are things you have to ignore” to get on in life. He is taken aside by his local publican, a woman who has similarly scrabbled up from humble origins to establish a thriving business and cautioned to not make trouble for the nuns since “their fingers are in every pie in the town”.

I will refrain from fully revealing every detail of the film’s plot. But this element of the screenplay – where Claire Keegan along with Enda Walsh – draw out the sense in which the oppressive ecclesial institutions were enabled and even sanctioned by the wider population is exceptionally well done. The film does not pull any punches on the evils that were committed in the name of churches in Ireland. Indeed, if anything, the presentation of the nuns veers too far towards caricatures of pure malevolence. But with surgical precision, it evokes the ways in which all such systems of oppression are socially constructed and maintained. Otherwise, good people learn to look the other way.

And that is the lasting significance of this film. Toni Morrison has spoken about how it can seem harder to write about goodness than evil. “Evil has a blockbuster audience; goodness lurks backstage.” In Small Things Like This, Claire Keegan introduces us to a hardworking small business owner who treats his staff well, a loving father who seeks to care for his wife, a man who lives down a back street of a provincial town in an overlooked part of a small island on the periphery of Europe. And in this very definitively backstage context, he is presented as heroic in his pursuit of the Good.

We all fancy ourselves to be the one person who would stand up and oppose systems of oppression if we ever found ourselves enmeshed in them. Cillian Murphy’s depiction of Bill Furlong whispers to us that we likely are enmeshed in just that way and are choosing not to notice. Small Things Like These is a heavy film that somehow liberates. It reminds us that there is, within each of us, this appetite for seeing the Good and bring brave enough to do it. It is worth your time far more than any competing blockbuster.